The MSE Equity Total Return Index (MSE) closed the week 1% in the red, to finish at 7,842.173 points. Trading activity was spread over 22 equities, as six headed north, while seven headed in the opposite direction. Overall, 106 trades were executed during the week, with turnover dropping almost by half to €0.3 million.
In the banking industry, all four locally listed banks were active. FIMBank plc was this week’s worst performing equity, as the bank’s shares plummeted by 27.5% to the €0.28 price level. Trading volume tallied to 135,842 shares spread over 13 trades.
Bank of Valletta plc (BOV) shares managed to hold on to €0.85 and closed unchanged, as 10 trades on a volume of 65,087 shares and worth €55,416 were recorded. Trading activity in the bank’s equity saw its price fluctuate between a weekly low of €0.85 and a weekly high of €0.865. Since the beginning of the year, the value of BOV shares are 10.5% lower.
Yesterday, after close of trading, the bank announced that the board is scheduled to meet on December 9 to consider, and if thought fit, declare an interim dividend.
On the other hand, HSBC Bank Malta plc (HSBC) shares trended 2.4% higher to also close at the €0.85 level, after trading at a weekly low of €0.81. HSBC’s shares changed ownership 16 times, with turnover reaching €47,290. When analysing the year-to-date figures, HSBC shares are currently trading 5.6% lower.
The equity of Lombard Bank Malta plc ended the week 6.2% lower, as its shares were involved in three small transactions across 1,066 shares. The banking equity ended the week at €1.83.
The share price of BMIT Technologies plc advanced by 0.4% to close at €0.496, as four trades across 20,100 shares were recorded.
Simonds Farsons Cisk plc was involved in four deals, as the equity jumped 2.4% to regain the €8.50 price level on a volume of 2,500 shares.
Malta International Airport plc exchanged hands 11 times on 6,597 shares to end the week with a decline of 1.7% at the €5.85 level. Total turnover was of €38,670.
PG plc was one of the most liquid equities during the week, as 21,186 shares traded over 10 deals. The equity declined by 0.8% during yesterday’s session to the €2.40 level after trading flat all week. Turnover reached €51,218. Despite this drop, the share price of the retail conglomerate is up by 20% since the beginning of the year.
The board of PG plc resolved to distribute a net interim dividend of €2.25 million, equivalent to €0.0208 per ordinary share. This dividend will be paid on December 10 to the ordinary shareholders who were on the company’s register as at close of business on December 2.
Grand Harbour Marina plc lost 6.8% during Monday’s trading session, as the equity ended the week at the €0.69 price level. This drop was caused by two small trades worth a mere €51. The company’s equity did not trade for the rest of the week.
Harvest Technology plc shares closed unchanged at €1.46, as four trades worth €5,400 were recorded.
The shares of the hotel operating company International Hotel Investments plc (IHI) held on to the €0.58 level, as trading activity consisted of three small trades worth €1,175.
IHI announced that its €80 million bond offer was oversubscribed by the offer date of November 30. The allocation policy will be announced on December 7.
IHI added that, as the travel industry worldwide shows signs of recovery, the company witnessed an increase in demand, revenue generation and profitability in the second half of the year, relative to 2021 year-end forecasts published earlier in the year. The company had announced, when publishing its financial analysis report in October 2021, that it was expected to generate a €15 million EBITDA for the full year of 2021. With actual results now in hand up to November, the company is forecasting EBITDA for the year to exceed €24 million, relative to the €3.8 million EBITDA loss for 2020.
The local postal operator, MaltaPost plc, traded 0.8% lower, as one trade across 385 shares caused the price to decline to €1.19.
Insurance company Mapfre Middlesea plc declined by 13.2% on Thursday before rebounding 15.2% during yesterday’s trading session to close the week unchanged at €2.20. Trading consisted of 2,097 shares spread over three deals.
Although trading on small volumes, MIDI plc shares were very volatile during the week, as their price fluctuated between €0.322 and the €0.398 level. Despite this volatility, the company’s equity price closed unchanged at €0.398.
VBL plc also closed unchanged at €0.30, as 5,000 shares traded over a single trade, tallying to a value of €1,500.
Trident Estates plc advanced by 7.7% to reach €1.54. A turnover of €507 was generated, as 350 shares exchanged hands over two trades.
Malta Properties Company plc shares lost 1.8% to end the week at €0.55. Trading consisted of just 600 shares worth €327 over three deals.
Similarly, throughout the week, Tigné Mall plc and Santumas Shareholdings plc traded flat, ending the week at €0.70 and €1.18, respectively.
MedservRegis plc gained 3.1% to the €0.67 price level, albeit on low volumes. MedservRegis plc published an interim report to update the market with regards to their business operations. The company explained how the pandemic resulted in most of the offshore drilling activity being suspended from the second quarter of 2020, due to the inability to provide a safe working environment, travel bans and closure of ports.
The company has identified significant growth potential in all its operating markets. Drilling in Cyprus resumed in the last quarter of this year and the order book for the Middle East remains strong for 2022.
During the second half of this year, the company signed a strategic alliance agreement with DP World Paramaribo Suriname, with a view to recommencing operations in that country as potential future growth has been identified. The company continued to secure work in the second half of the year and expects to be awarded new contracts going forward.
The company added that in a forecast published by the Economist Intelligence Unit, global energy consumption will rise by 2.2%, reaching 13,410 million tonnes of oil equivalent. This figure is higher than that recorded in 2019, compensating for the decline in consumption seen during the pandemic. The oil price stability above $70 per barrel during the past six months, as well as the recent tensions in the gas market are expected to foster additional investments by the international energy company.
With contracts and resources in place, the company added that it is well-placed to benefit from the rebound of the exploration and production activities in all markets where it operates.
MedservRegis plc has started implementing its integration plan, resulting in synergies in operations as well as identifying cross-selling opportunities within the core competencies of the company. Furthermore, the company is evaluating options and is in discussions to reduce the company’s debt.
The company’s strategy remains that of sustainable growth and returning to profitability. The company concluded that the transaction with the Regis Group has significantly improved both the net cash and equity to debt position of the company.
Malita Investments plc closed flat on a small volume of 1,400 shares, to close at the €0.805 level, as a result of two small trades.
On the fixed income side, the MSE MGS Total Return Index declined by a further 0.4%, to close at 1,097.561 points. A total of 14 government bonds were active during the week, with the 4.1% MGS 2034 (I) being the most liquid, as two trades worth a total of €183,126 were recorded.
The MSE Corporate Bonds Total Return Index gained 0.4% over the week, reaching 1,144.738 points. A total of 45 issues were active, with total turnover reaching almost €1.3 million. The 4.5% Endo Finance plc € Unsecured Bonds 2029 was the most liquid corporate bond, as three trades worth €148,500 were recorded.
In the Prospects MTF market, three issues were active, with total turnover tallying to €49,971, spread over 10 deals. The 5% Busy Bee Finance plc Unsecured € 2029 was the most liquid and generated a total weekly turnover of €23,071 to close at €100.60.
This article, compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such.
The company is licensed to conduct investment services by the MFSA and is a member of the Malta Stock Exchange and the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article.
For more information, contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, tel: 2122 4410, or e-mail info@jesmondmizzi.com.